Why airlines keep cutting back — and can Ottawa do anything to stop it?

When it comes to air travel, it can feel like you’re getting less while spending more: smaller space, less perks and even fewer basics.

So what’s going on?

Starting Jan. 3, Air Canada customers on a basic fare ticket will no longer be allowed to bring a carry-on bag when flying to and from certain destinations.

Carry-ons will now need to be checked before reaching the gate for a fee, with a $65 cost facing anyone who shows up to the gate with an ineligible bag.

Come Jan. 21, basic fare customers will also face a fee if they wish to change seats from the complimentary one they are initially booked into at check-in.

“It’s really a cash grab on the part of Air Canada looking to see if they can increase their revenues from having a significant increase in price,” said John Gradek, who heads the aviation management program at McGill University.

Earlier this year, WestJet introduced its UltraBasic fare across domestic and trans-border routes, removing carry-on bags and assigning seats at the back of the plane unless you pay a fee.

Personal finance and air travel commentator Barry Choi told Global News it appeared competition was a big cause.

“Both WestJet and Porter already have a basic fare with no carry-on allowance, so I think it’s a way for Air Canada to allow consumers to have that apples to apples comparison,” Choi said. “So you can really see what you’re getting with each airline and then the consumer  can decide.”

He added airlines might be changing their stance around carry-ons, at least for basic fare passengers, to reduce slowdown when trying to board a plane.

Gradek said with basic fare passengers, there could also be the issue that by the time they got on the plane — basic fare customers are typically last to board — there may be no space left.

That can mean their bag has to be checked, which slows down the boarding process further.

When Air Canada’s announcement came out, Transport Minister Anita Anand said she was “extremely disappointed” by the move.

In an email, Laurent de Casanove, press secretary for Anand said the government was working to bring “more transparency” to air travel, noting the most recent federal budget included making airline fees, including baggage and seat selection, “easier to understand.”

That budget included vows to work with the Canadian Transportation Agency to ensure airlines were more up front with extra fees charged when booking a ticket, including showing the extra costs with the advertised price instead of after selecting your ticket.

Meanwhile, there’s still no expected date of release for updates to the air passengers’ bill of rights.

Anand’s office said the rules would be “finalized and shared soon.”

In a statement, her office adds it was “important to get the Air Passenger Protection Regulations right, balancing passenger protections with connectivity.”

A spokesperson from Anand’s office told Global News that she plans to meet airline CEOs in mid-December to ensure passengers will get good service this holiday season. However, Air Canada’s change will also be on the agenda when she meets with its CEO.

Gradek said he’d like Ottawa to take more action on the industry, including the fees Canadians are facing, pointing to the Spanish government’s decision to fine five budget airlines for charging passengers additional fees including for luggage.

“The world is starting to get a little sensitive to these ancillary revenues that the airlines are having as a result of these fees, so Canada, time to jump aboard,” he said.

He also suggested it was time to revisit regulation and commercial oversight of the airlines and added the minister could step in.

“It is within the minister’s prerogative to, in fact, say you cannot sell a ticket in Canada unless it includes, as part of its base price, carry-on bags and baggage, checked baggage and seat selection,” he said.

Asked if Anand could look into mandating such a change, a spokesperson on background told Global News such decisions are made by airlines and that Ottawa could not intervene in the market.

While Air Canada’s expected fees are set to come into place next month, Gradek warned not to expect an end to changes.

“We’re not done,” he said. “On ticket pricing, competition kind of makes sure that nobody gets away with too much of an increase, but these fees are big bucks.”

&copy 2024 Global News, a division of Corus Entertainment Inc.